A row over taxi licensing between Berwick and Newcastle City Council moved to the High Court in London this week, with the Tyne authority claiming the border town's stance on taxi licensing is causing havoc.
The court heard that Berwick now boasts a staggering total of 672 licensed hackney carriages - more than one for every 40 residents - only a fraction of which are ever seen on the town's streets.
Instead, most are making their way south to carry out "minicab" work in Newcastle and other north east towns, although some Berwick taxis have even been seen as far away as Surrey.
Newcastle says enough is enough and has taken Berwick to the High Court in a bid to put a stop to what it says is the town's "excessive and unlimited" issuing of hackney carriage licences.
However, Charles Holland, for Berwick, said the town's hands were "effectively tied" and it has no legal power to insist that locally licensed cabs actually operate within the Berwick area.
He said the problem had arisen due to a disparity between the fees and conditions imposed by Berwick and Newcastle on taxi licence applicants, who are fully entitled to "shop around" for the most favourable regime.
Newcastle, unlike Berwick, limits the numbers of hackney carriage licences it issues, with the result that there is a long waiting list in the city and scarce licences can change hands for substantial sums, Mr Holland told Judge Christopher Symons QC.
Arguing that a would-be cabbie can apply for a licence "anywhere he wants," the barrister said it was an entirely lawful activity for Berwick cabs to take private hire bookings in Newcastle - or anywhere else in the country.
Newcastle, added Mr Holland, was effectively demanding that Berwick rewrite an Act of Parliament by restricting taxi licences only to those who actually operate in the town.
He added that, if Berwick gave in to Newcastle's demands and imposed tougher restrictions on taxi licensing, cabbies would inevitably shop around again and "look to the next cheapest authority" to make their applications.
But he accepted that Berwick faced difficulties in regulating and managing such a large taxi fleet, particular when most of the vehicles operate so far outside its area and drivers have no connection with the town.
Mr Holland told the judge: "We don't for one moment say that the current system is ideal, but it is the current system and this use of a hackney carriage is lawful."
Mr John McGuinness QC, for Newcastle, told the court that the addresses of Berwick-licensed taxi proprietors take in most of the north-east's population centres - including Durham, Sunderland, Middlesbrough and Hartlepool - but some live as far afield as the West Midlands, Wales, Liverpool and even Surrey.
Newcastle wrote to Berwick in May last year, demanding a change in its stance on taxi licensing, but Berwick refused.
Mr McGuinness said most taxi licence applicants in Berwick "have not the slightest intention" of plying for hire in the town and accused the borough council of expressly thwarting Parliament's intention that hackney carriage services should be local in nature and serve local populations.
Newcastle City Council is asking Judge Symons to rule Berwick's stance unlawful and to declare that the town must only issue licences to cab proprietors if satisfied their vehicles will be used within the Berwick area.
The High Court hearing continues and, given the importance of the case, Judge Symons is expected to reserve his decision until a later date.